India And China To Account For Half Of Global Economic Growth In 2023.: IMF

According to International Monetary Fund (IMF) managing director Kristalina Georgieva, India and China are projected to account for half of global economic growth this year.

The IMF chief predicted that the global economy will continue to stagnate because to the Covid-19 pandemic and the fallout from the Russia-Ukraine war, and that it would expand at less than 3% in 2023.

"The period of slower economic activity will be prolonged, with the next five years witnessing less than 3% growth, our lowest medium-term growth forecast since 1990, and well below the average of 3.8% from the past two decades," she said.

"Some momentum comes from emerging economies -- Asia especially is a bright spot. India and China are expected to account for half of global growth in 2023. But others face a steeper climb,"  She elaborated.

"Some momentum comes from emerging economies — Asia especially is a bright spot. India and China are expected to account for half of the global growth in 2023. But others face a steeper climb,"  Georgieva explained.

Slower growth, according to the IMF chief, will make it difficult for low-income nations to catch up, a "severe blow."

"Poverty and hunger could further increase, a dangerous trend that was started by the Covid-19 crisis,"  she said.

Georgieva's statements come ahead of the IMF and World Bank's spring meetings next week, where policymakers will discuss the most important concerns facing the global economy. The meetings will take place against a backdrop of central banks (around the world) raising interest rates in an attempt to rein in spiraling inflation rates.

According to the IMF's chief, around 90% of advanced economies' growth rates are expected to slow this year.

Increasing borrowing rates occur at a time when low-income countries' export demand has deteriorated, she says.

Although the global banking system had "come a long way" since the 2008 financial crisis, "concerns remain about vulnerabilities that may be hidden, not just at banks but also non-banks", Georgieva stated.

"Now is not the time for complacency,"   she remarked.

While virtually inaugurating the seventh edition of the Invest Madhya Pradesh-Global Investors Conference on Wednesday, Prime Minister Narendra Modi said in a statement that the International Monetary Fund regards India as a "bright star" in the world economy.

While praising the country's "strong macroeconomic fundamentals," Prime Minister Modi stated that the World Bank considers India is in a better position to deal with global headwinds than many other countries.